The Importance of Asset Protection Planning

The Importance of Asset Protection Planning

Posted By
Davidov Law Group

You have built up a lifetime’s worth of assets, savings, and wealth,
and are finally ready to retire. With smart financial decision-making
and years of constant saving, you have even accumulated a healthy amount
of money to leave as an inheritance to your children and grandchildren.
But did you know that it can all disappear in a heartbeat if you should be sued?

Whether it be the result of financial predators who use the legal system
to deprive you of your assets, a legal issue involving your business,
or a sudden accident for which you are held liable, a lawsuit can be devastating
for your financial situation. In fact, if someone wins a monetary judgment
against you, your family could become bankrupt trying to pay it off. This is why
asset protection techniques are so important.

What Is Asset Protection?

Simply put, asset protection is an area of law which utilizes various legal
methods to shield your assets from being seized by creditors in the event
that you should be sued. With a proper asset protection plan, creditors
will be largely unable to force you to liquidate your assets or place
a lien on an asset when they win a judgement against you.

Common asset protection techniques include:

Maximizing contributions to IRAs

Moving funds to an irrevocable trust

Retitling assets

Using limited liability companies

Using family limited partnerships

Asset protection can be beneficial for individuals of all tax brackets,
not just the super-wealthy. With that being said, an asset protection
plan only works if you act prior to being sued. If you are already facing
legal action or fear impeding legal action, the courts will likely reverse
any transfers of assets you have recently made which prevent creditors
from reaching them. For this reason, it is important you retain the services
of a skilled attorney and put a plan in place ahead of time before it
is too late.

Protect Your Future with Davidov Law Group

Whether you work in a high-risk industry with a high likelihood of being
sued or simply wish to make certain your assets remain intact for your
heirs, our Nassau County asset protection lawyers at Davidov Law Group
can help. Having provided premier-quality
estate planning advocacy for clients throughout New York for more than 25 years, our team
of top-rated advocates can bring the sound legal counsel and strategies
you need to guard your and your family’s interests.

The information on this website is for general information purposes only.
Nothing on this site should be taken as legal advice for any individual
case or situation. This information is not intended to create, and receipt
or viewing does not constitute, an attorney-client relationship.